At the level of output where marginal revenue equals marginal cost, assume that the price of a competitive firm's product is between the firm's average total cost curve and its average variable cost curve. In this case the firm would
A. decrease output to reduce the costs.
B. continue to operate in the short run.
C. shut down.
D. increase output to increase profit.
B. continue to operate in the short run.
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When a consumer is consuming at a point where his or her budget line is not as steep as his or her indifference curve, then he or she should
A) consume more of the good that is measured on the horizontal axis. B) consume less of the good that is measured on the horizontal axis. C) not change his or her behavior. D) consume none of the good that is measured on the horizontal axis.
During the bureaucratic bargaining process, if the legislature tries to counteroffer by saying it wants less output at a given price, the bureau's can employ the strategy of _____
a. saying no b. telling the legislature that reducing the output would endanger lives c. telling the legislature that at the lower output, the price per unit will be much higher d. making a counter-offer of more output at a lower price
The change in total cost of production that results from a change in the amount of a resource used is
a. average resource cost b. marginal resource cost c. marginal product d. marginal revenue product e. average revenue product
Economists would most likely suggest that advanced nations can best assist in the economic development of developing nations by:
A. Increasing the amount of military aid to strengthen the government's role in providing law and order B. Increasing trade barriers so that less developed nations will become more self-sufficient C. Reducing trade barriers and increasing the amount of private and public capital D. Decreasing the amounts of private capital or foreign aid to reduce the level of neocolonialism